Chapter 156: The Two Princes Trading Company
Chapter 156: The Two Princes Trading Company
"Hmm, grilled lamb chops, beetroot truffle soup, roasted bread."
Aleksey casually rattled off a few dishes to the waiter beside him, then looked at Joseph and asked, "I'm curious, what do you mean by 'something unrelated to politics'?"
"I'll have black tea, without milk, spices, or sugar."
Joseph dismissed the waiter and smiled. "For example, engaging in some business. If you had your own ventures in Paris, Her Majesty the Empress wouldn't worry about your conduct—oh, forgive my phrasing—and recall you to Russia."
Business? Aleksey blinked, finding some sense in the idea. No one would connect a busy businessman with the succession in Saint Petersburg. It was indeed a good way to stay away from politics, and to some extent, shed the image of a dissolute playboy.
In fact, Aleksey's descendants did exactly that. To distance themselves from politics, they started businesses and eventually established Russia's largest sugar company.
However, Aleksey immediately shook his head. "Thank you for the suggestion, Your Highness. But I'm terrible at business. Her Majesty the Empress already has to subsidize me with tens of thousands of rubles each year; I wouldn't want to lose her even more money."
"No, I believe you will make money," Joseph chuckled. "And a lot of it."
Joseph inhaled the fragrant steam from the teacup the waiter had brought, then glanced at the illegitimate son. "It's not as difficult as you imagine. All you need is a good partner."
"A partner?"
Joseph gestured to himself with a small spoon. "For example, me."
Aleksey exclaimed in surprise, "You mean, you want me to go into business with you?"
Joseph nodded. "We can invest together and establish a trading company specializing in trade between France and Russia."
He wasn't saying this on a whim; he had planned for this for a long time.
In fact, France and Russia had signed a trade agreement the year before last, but on one hand, France's finances were tight, and on the other, there weren't many goods the two countries could offer each other that were of mutual interest. Besides wine and Enlightenment ideas, France had little else to export to Russia. At the same time, Russia's main exports, such as flax, oils, and timber, were not in high demand in France.
This led to their bilateral trade volume remaining lukewarm.
However, both countries were eager to significantly boost their trade volume.
For Russia, there was a persistent concern about over-reliance on trade with Britain, and a desire to diversify its trade structure, for example, by increasing France's share of trade to reduce the risk of being constrained by Britain.
As for France, increasing trade with a large nation like Russia would undoubtedly greatly improve its financial situation.
But willingness remained just that—willingness. Historically, until Emperor Napoleon's rise to power and Russia's joining of the Anti-French Coalition, trade between the two countries saw no significant improvement.
This was also a situation Joseph intended to reverse, and he had the means to do so.
Historically, France's demand for Russian goods was low because Britain had crushed French textile manufacturing. But now, under Joseph's guidance, French textile industry would challenge Britain, which would require large quantities of raw materials, and flax was one of them. As for cotton and wool, solutions would have to be found in North America and Australia later.
At the same time, Britain was heavily reliant on Russia for flax—Russian goods accounted for about eighty percent of its flax consumption. If France absorbed a large amount of Russian flax, it would inevitably lead to a flax shortage in Britain, subsequently driving up the prices of its linen textiles.
It was a win-win situation.
On the other hand, French industry was about to enter a period of explosive growth, and industrial products urgently needed markets for sales. Russia, with its population of over 30 million, was certainly a vast market where French products should be present.
Joseph had originally planned to wait for Archbishop Talleyrand to make initial contact with the Russians before advancing the trade agenda.
But encountering Aleksey today, he felt this might be an even more opportune moment.
"You don't need to worry about the management; we can hire professionals to run the company," Joseph said. "I'll contribute some merchant ships as my share. These ships will fly the Russian flag and benefit from your 'Armed Neutrality' policy to avoid British interference.
"And you can have people in Russia acquire flax, oils, and perhaps iron, to serve as your capital contribution.
"Once these goods are transported to Marseille, they'll be loaded with French wine, textiles, and potentially paper and machinery in the future, before returning to Crimea."
The so-called "Declaration of Armed Neutrality" was a Russian trade policy announced by Catherine II in 1780. Its main provisions stated that "as a neutral nation, Russian ships may sail freely between ports and along the coastlines of belligerent nations, and belligerents may not impose restrictions unless the ships carry contraband of war."
This policy had already been recognized by Britain. Therefore, with Aleksey's "Russian ships" transporting goods, normal trade could be ensured even if conflicts arose between Britain and France.
Furthermore, Joseph had another trick up his sleeve.
He had previously reviewed the Anglo-Russian trade agreement, and according to its terms, Russian merchant ships could transport goods from the East to Europe, and the British fleet was not allowed to obstruct them. At the time, the British believed Russia had little presence in the East, so they agreed without much thought. However, this clause could be exploited by him through the trading company he was setting up with the illegitimate son.
Aleksey pondered for a moment, then hesitated. "Your Highness, I must admit, your proposal is very thorough.
"However, there are already many people conducting such trade between France and Russia, and I don't believe we can be more competitive than them."
Joseph smiled and nodded. Aleksey was indeed an intelligent man, not the frivolous playboy he appeared to be. It seemed that partnering with him would not be disappointing.
"Firstly, the current trade volume between France and Russia is far from sufficient.
"If I recall correctly, over three hundred merchant ships sail from Britain to Riga annually. Meanwhile, only a tenth of that number sail from Lyon to the Black Sea.
"To be frank, France is about to embark on industrial reform, and its demand for Russian goods, especially flax, will significantly increase. In that scenario, the existing merchant ships will be nowhere near enough."
Aleksey nodded slightly. So, the French Crown Prince had insider information. In that case, this business venture truly was viable.
Joseph leaned forward and lowered his voice. "Furthermore, I can offer you tariff concessions. I guarantee the discount will be substantial."
"Are you serious?"
"Absolutely."
Joseph was fully confident he could secure these tariff concessions from the cabinet. He wouldn't even need to lower tariffs; simply turning a blind eye to his trading company would suffice.
This approach would not only draw in the Russians but also, by lowering import tariffs on flax, reduce the raw material costs for the French textile industry, increasing its competitiveness.
At the same time, it would weaken trade ties between Britain and Russia, driving up the cost of British linen products.
He continued, "Concurrently, you can leverage your connections in Russia to acquire cheaper flax, oils, and similar goods. By cutting costs on both ends, why would we fear a lack of profit?"
Aleksey was overjoyed. If Russia could significantly increase exports to France with low tariffs, it would greatly reduce Russia's trade dependence on Britain. This was a major undertaking the Empress had wanted to achieve for over a decade but hadn't succeeded in! If he could credit these achievements to his brother, it would surely drastically change his mother's attitude towards his brother!
He clasped his hands together excitedly. "Your Highness, I believe your proposal is very feasible. I will do my utmost to lower the acquisition price of the goods."
Joseph smiled and bowed slightly. "I'm delighted to partner with you, Count Bobrinsky."
On the table, the dishes Aleksey had ordered had long grown cold, yet he hadn't even thought to eat them.
Joseph had a fresh, hot meal brought over and gestured to the illegitimate son. "I believe you should enjoy your dinner now."
After Aleksey finished eating, the two discussed some more details about the trading company, effectively finalizing their partnership.
Joseph's reason for establishing this trading company, bypassing the Russian government, was primarily to avoid lengthy trade negotiations. Negotiation efficiency in this era was remarkably low, especially with the vast distance between Russia and France. If negotiators on both sides encountered disagreements, it would take over two months just to return home and seek instructions.
So, he opted for this private operational model to kickstart trade between the two countries. Once the trade volume grew, and both sides developed market dependency, negotiating a formal trade agreement would become much easier.
Additionally, this method allowed him to indirectly control a portion of raw material imports, making the capitalists a bit more compliant.
Around ten o'clock that evening, Aleksey bid farewell to Joseph but stood watching his retreating figure, a sense of unreality washing over him.
What kind of young man was this, who suddenly appeared before him, solved his predicament with a trading company, and simultaneously presented Russia with a great gift?
He had never quite believed the rumors about the French Crown Prince—things like him overseeing Police Reform, drastically improving public order in Paris, or planning this grand Fashion Week. He had simply assumed that officials handled everything and then attributed the credit to the Crown Prince.
But after their interaction tonight, he was convinced that the previous rumors about the Crown Prince were all true, and his eloquence and wisdom were even more remarkable than reported.
Aleksey suddenly felt a pang of regret. If his brother Paul possessed such wisdom, he wouldn't have had to spend so many years far from his homeland, numbing himself with alcohol and women, fashioning himself into a useless playboy.
...
While Joseph and Aleksey were discussing the trading company, an auction was underway in the main hall on the first floor of Fashion Week.
The auction was attended by dignitaries from various countries, including many royal family members. Queen Marie, who had just delivered a brief speech for Fashion Week, was also pulled along by her niece, sitting in a private box on the second floor.
The items at the Fashion Week auction were primarily expensive dresses, luxury goods, and similar articles.
None of these items caught the Queen's eye; her mind was preoccupied with her conversation with Louis XVI earlier that afternoon.
It was after lunch when she casually discussed their son's fiancée with her husband.
She had been convinced at the time that her niece had already won the Crown Prince's heart. However, the King told her that he had spoken with their son, and it seemed neither Clémentine nor Maria were suitable fiancées for him.
She looked troubled at her lively and adorable niece beside her. 'Good heavens, how could Joseph not like her?' she thought.
For a moment, she truly wished she could just tell her son, like other kings and queens would, that Clémentine was his future wife. But she couldn't bear to see him disappointed or unhappy.
'Perhaps I should wait a bit longer...' the Queen sighed inwardly. The Crown Prince and Clémentine were still young; perhaps if they spent more time together, he would fall for his beautiful and charming cousin.
Just then, the auctioneer below announced in a melodious voice, "The next item is the exquisite 'Wish of the Stars' necklace. It comes from the renowned designer..."
The Queen was lost in thought when she saw Clémentine suddenly spring to her feet beside her, her large blue eyes fixed on the item, muttering excitedly, 'He wore that, yes, that's the one!'
The Queen smiled and shook her head. Young girls found it hard to resist the allure of pretty jewelry; she herself had been just as excited when she saw beautiful adornments in her youth.
She just didn't notice that the auctioned necklace was almost identical to the one worn by the Crown Prince in the painting "Son of Divine Favor"!
Good heavens, this was certainly not Joseph's necklace; he hadn't even seen it before.
That was entirely because Madame Le Brun, the artist, had accepted sponsorship from a jeweler and incorporated the necklace he provided into the painting. But honestly, the dazzling necklace, with its galaxy pattern made of numerous diamonds, did indeed suit Joseph's image well.
After the auctioneer announced the starting bid of eighty thousand livres, Clémentine unhesitatingly signaled her lady-in-waiting, who immediately raised her right hand.
Before the auctioneer could even acknowledge the bid, a woman's voice echoed from a private box on the east side: "Ninety thousand."
Clémentine immediately puffed out her cheeks. Someone dared to bid against her for her cousin's necklace, and they raised the price by ten thousand livres at once!
She signaled her lady-in-waiting again, who raised her hand.
The auctioneer immediately gestured towards her. "The guest here bids ninety-one thousand livres."
It was the same voice again: "One hundred thousand."
The young girl, not to be outdone, raised her bid again.
And the woman in the east box continued to bid in round numbers, unfazed: "One hundred ten thousand."
Clémentine grew anxious, placing her hands on her hips and declaring indignantly, "One hundred twenty thousand!"
'Hmph, does she think I can't add ten thousand?'
The woman from the east, however, said without hesitation, "One hundred forty thousand."
"You! You raised it again!" the young girl continued to shout, "One hundred sixty thousand!"
"One hundred eighty thousand."
"Two hundred thousand!" Clémentine exclaimed, huffing out the bid, then turned to her lady-in-waiting. "Who is that person? Why are they trying to cross me?"
The lady-in-waiting pressed herself against the railing of the second-floor box, leaning out halfway. She finally caught a glimpse through the gap in the curtain of the east box: a woman in a red dress, with long brown hair and gentle brown eyes.
She immediately drew back, covering her mouth in surprise. Leaning closer to Clémentine's ear, she whispered, "Miss, it seems to be the Princess of the Two Sicilies."
"Ah—" The young girl bit her lip. If it was her, then losing was even less of an option!
"Two hundred fifty thousand!"
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